News: Spanish property taxes for non residents

In case you want to buy a home in Spain, we want to remind you that there are a large number of taxes that you will have to face. All this depends on the type of home or property acquired and where it is located. It is necessary to remember that each autonomous community has a different legislation in relation to the Spanish property taxes for non residents

What are the spanish property taxes for non residents?

When you acquire a property in Spain, you must pay several taxes such as VAT, with a fixed rate of 10% of the declared value of the property. There is also the Tax on Documented Legal Acts (AJD), taxation that is additional to VAT. This tax is calculated at a rate of 1.5% for properties that have been acquired in the Valencian Community or in Andalusia and 2% of the declared value for properties acquired in the Community of Murcia.

In case of resales, you will have to face the Individual Transmission Tax (ITP) This tax must be paid at a rate of 8% of the declared value of the property for properties that are in Murcia and 8% of the declared value of the property for properties located in Andalusia and that have a price of up to 400,000 euros. In case the price is higher, the tax will be higher.

The rate increases to 10% of the declared value of the property in case it is located in the Valencian Community. The IRPF is another tax and is taxed at 0.15% of the value of the property (approximately) and must be paid annually, corresponding to the previous calendar year.

Finally, as a non-resident owner of a home in Spain, you should know that some taxes have to be paid in this country, regardless of whether the property is used intensively, occasionally or even if it is empty for much of the year.